NEW YORK (TheStreet) -- Taser International (TASR) stock is up by 2.30% to $17.81 in mid-afternoon trading on Wednesday, on expectations that Chicago's mayor will announce that every police officer will carry a Taser weapon by June 1.
On Wednesday at 3 p.m. ET, Chicago's mayor and police superintendent will announce changes to how police respond to incidents, which will include equipping each police officer with a Taser, CNN reports.
The Chicago Police Department has about 12,000 officers. Twenty percent of them have access to Tasers, which are electroshock weapons that are non-lethal, according to CNN.
The decision to equip all officers with Tasers comes amid protests in Chicago over the 2014 death of Laquan McDonald, who was shot by a police officer.
"The policy changes center around de-escalation tactics to reduce the intensity of a conflict or a potentially violent situation at the earliest possible moment, emphasizing that the foremost goal is to protect the safety of all involved," mayoral spokeswoman Lauren Huffman told Reuters.
Based in Scottsdale, AZ, Taser provides equipment to law enforcement, military and personal defense groups.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate TASER INTERNATIONAL INC as a Hold with a ratings score of C+. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 1.7%. Since the same quarter one year prior, revenues rose by 13.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- TASR's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.63, which clearly demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has increased to $19.35 million or 16.00% when compared to the same quarter last year. Despite an increase in cash flow, TASER INTERNATIONAL INC's average is still marginally south of the industry average growth rate of 20.70%.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Aerospace & Defense industry. The net income has significantly decreased by 79.9% when compared to the same quarter one year ago, falling from $7.56 million to $1.52 million.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 30.71%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 78.57% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, TASR is still more expensive than most of the other companies in its industry.
- You can view the full analysis from the report here: TASR